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Citi is reportedly preparing to roll out a crypto custody service by 2026, joining a growing list of Wall Street institutions expanding into bitcoin and other assets due to a friendlier U.S. regulatory climate.<\/p>\n
Biswarup Chatterjee, Citi\u2019s global head of partnerships and innovation for its services division, told CNBC<\/a> the bank has been developing its custody offering for over two years and plans to bring it to market \u201cin the next few quarters.\u201d\u00a0<\/p>\n The service would allow Citi to hold native bitcoin and other crypto on behalf of clients, a significant move for one of the world\u2019s largest custodians of traditional financial assets.<\/p>\n \u201cWe may have certain solutions that are completely designed and built in-house that are targeted towards certain assets and certain segment of our clients, whereas may we may use a third party, lightweight, nimble solution for other kind of assets,\u201d Chatterjee told CNBC.<\/p>\n Earlier this month, Citigroup analysts issued<\/a> a bullish 12-month outlook for bitcoin, setting a target of $181,000 and revising their year-end forecast to $132,000. They cited strong inflows of around $7.5 billion and rising institutional demand.\u00a0<\/p>\n The analysts said they were more positive on bitcoin than ethereum, noting that bitcoin was capturing most of the new capital entering crypto markets and that a supportive U.S. regulatory backdrop could help sustain momentum into 2026.<\/p>\n Custody \u2014 the safekeeping of client assets \u2014 is considered one of the most crucial and challenging aspects of institutional crypto adoption. Just today, JPMorgan said<\/a> they would not directly hold their clients\u2019 crypto.\u00a0<\/p>\n While specialist firms like Anchorage and BitGo have dominated the space, large banks see an opening to offer regulated alternatives backed by decades of experience safeguarding securities.<\/p>\n Citi\u2019s crypto embrace comes as Washington has taken steps to provide clearer rules<\/a> for digital assets through measures such as the GENIUS Act, giving major financial institutions confidence to develop crypto-related products.<\/p>\n Citi\u2019s exploration of custody runs parallel to its broader blockchain efforts, including Citi Token Services<\/em>, which enables real-time cross-border payments using tokenized deposits.<\/p>\n \u00a0The bank is also studying stablecoins \u2014 digital tokens typically backed by fiat currency \u2014 as tools for global trade and payments in regions with less-developed banking systems.<\/p>\n Other banks are advancing similar initiatives As mentioned earlier, JPMorgan recently unveiled <\/a>plans for a deposit token, while Bank of America is reportedly developing a stablecoin product.\u00a0<\/p>\n<\/p><\/div>\nBanking and holding custody of digital assets<\/h2>\n